National Organic Program Update final.pdf · Agricultural Marketing ServiceUSDA National Organic Program Organic Certification: •Ensures products were produced without prohibited

3/12/2013

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National Organic Program UpdateeOrganicMarch 13, 2013

Miles V. McEvoyDeputy AdministratorUSDA National Organic Program

Why Organic?

• Environmentally sound farming systems

• Biodiversity

• Animal welfare• Less toxic inputs• Rural development• Economic

opportunity

Veterans Sustainable Agriculture Training

• Helps combat veterans transition to civilian life

• Teaches veterans how to grow organic hydroponic crops, seed to market

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• Former homeless vet

• Created hot sauce business plan at VSAT

• Organic hot sauce now for sale in grocery stores.

Agricultural Marketing ServiceUSDA National Organic Program

Organic: A Brief History

1990Congress passes Organic

Foods Production Act,

creates foundation for

USDA organic regulations

PresentOngoing work to

clarify and enforce

USDA organic

regulations

Before 1990No national organic

standards, consumer

mistrust

2002USDA organic

regulations fully effective


Why is Certification Important?

• Allows use of USDA organic seal and organic claim• Empowers consumers to choose between

production methods • Gateway to USDA services for organic operations• Verifies that products meet

national organic standards• Protects consumers• Establishes level playing

field for farmers, processors, and marketers

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What Can Be Certified?

• Crops

– Wheat, cotton, pasture

• Wild crops

– Mushrooms, kelp, berries

• Livestock

– Beef, eggs, milk

• Processed/multi-ingredient products

– Juice, soup, bread, yogurt


Organic Certification:

• Ensures products were produced without prohibited methods/substances, such as:

– GMOs, arsenic, synthetic fertilizers, prohibited pesticides

– Note: Natural substances allowed unless specifically prohibited, synthetic substances prohibited unless specifically allowed.

• Is scale-neutral: all operations must meet same requirements


Is My Land Eligible?

• No prohibited substances on land for three years

• Before three year waiting period:

– No use of USDA organic seal

– No selling, labeling, representing product as organic

Technical and Financial Assistance - NRCSEnvironmental Quality Incentives Program

(EQIP) Open to organic and transitioning

farmers

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What are the Requirements?

• Specific requirements for each certification category (e.g. crops, livestock, wild crops, processing)

– Labeling

– Record-keeping

• Violators subject to compliance and enforcement actions:

– Loss of certification, financial penalties


How Much Does Certification Cost?

• Depends on size/scope of operation

• Few hundred – several thousand dollars

• Annual recertification costs

Financial Assistance – Cost Share

2013 - Available in 16 states (CT, DE, HI, ME, MD,

MA, NV, NH, NJ, NY, PA, RI, UT, VT, WV, WY)

Open to certified organic farmers and handlers

Reimburses up to 75% organic certification costs

Contact state department of agriculture


Who Would Certify My Farm or Business?

• A third-party certifying agent

• Accredited by the USDA National Organic Program

• Can be:

– State department of agriculture

– Non-governmental accredited certifying agent

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How Do I Get Certified?

1. You submit application to certifying agent, including:– Description of operation

– Substances used in past 3 years

– Products grown, raised, or processed

– Written Organic System Plan, including practices and substances to be used

2. Certifying agent reviews application


How Do I Get Certified?

3. Qualified organic inspector conducts inspection, writes report

4. Certifying agent reviews report

5. If you are in compliance, you receive organic certificate.

Annual certification renewal


Who Doesn’t Need to Be Certified?

• Small organic farms and businesses Gross agricultural income from organic sales $5,000 per year or less

• Some brokers, distributors, and traders

• Retail food establishments

These operations must still meet specific requirements.

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Certified organic cows

No added growth

hormones

Certified organic pasture

100% organic feed

Prohibited treatments = no longer organic

Graze at least 120 days/yr

No antibiotics

Support animal welfare

Example: Organic Cheddar Cheese


Summary: Dairy Farm

• Inspected each year, certification renewed

• Organic System Plan addresses:

– Pasture management

– Animal health

– Water/soil management


Making of Cheddar

• Organic milk transported in clean truck

• Arrives at certified organic processing facility

• Rennet added

– Example of allowed non-agricultural substance

– Allowed as type of animal enzyme

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Summary: Cheese Processing Facility

• Inspected each year, certification renewed

• Organic System Plan addresses:

– Equipment cleaning

– Ingredient sourcing

– Avoiding commingling with non-organic cheese


10 Years of USDA Organic

• 85 accredited certifying agents

• Over 25,000certified operations across 133 countries

• $31 billion in U.S. organic sales

• Tens of thousands of inspections, reviews, and certification decisions


Framework of National Organic Program

• USDA Organic Regulations

• Accreditation and Oversight

• Certification – Inspections, Sampling and Auditing

• Compliance and Enforcement

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Organizational Structure

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National Organic ProgramOffice of Deputy Administrator

Standards Division

Compliance& Enforcement

Division

National Organic Standards Board

(NOSB)

Accreditation & International

Activities


Standards Division• Rulemaking

Practice Standards, National List

• NOP Program HandbookInstructions and guidance

• National ListAllowed and prohibited materials

– Petition process / technical reports

– Sunset review by the NOSB

• Interpretations, provide consistency to certifiers and certified operations.


Accreditation and International Activities

• ~85 certifiers, certify ~25,000 operations

• State Organic Program (1California

• Recognition Agreements (4)India, New Zealand, Israel, Japan

• Equivalency Arrangement (2)Canada, European Union

• Export Arrangements (2)Japan and Taiwan

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Compliance and Enforcement

• Ensure consistent application of the NOP regulations.

– Complaint handling

– Investigations

– Civil penalties, penalty matrix

– Reinstatements of suspended operations

– Appeals, hearings, due process


National Organic Standards Board

• FACA board, two meetings per year

• Proposals, public comment, final recommendation

• National List and other recommendations

• Membership– 4 Producers

– 3 Environmentalists

– 3 Consumer/Public Interest

– 2 Handlers

– 1 Retailer, 1 Scientist, 1 Certifier

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YEAR

TERMS


2012 Highlights

• Successful NOSB meetingsNew Mexico and Rhode Island

• RulemakingFinal residue rule, National List substances, policy documents

• Compliance and EnforcementDoubled case closures, complex cases

• Certifying Agent Oversight~50 certifier audits, new checklists, streamlined audit review/response to corrective actions.

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2012 Highlights

• Office of Inspector General “No findings report” Competent oversight of National List and NOSB appointments.

• International Market AccessU.S. – EU Organic Equivalency Arrangement.

• Cost ShareReimbursed thousands of producers + handlers

• CommunicationsOrganic Literacy Initiative, NOP Organic Insider, and Organic Integrity Quarterly


Not applying standards uniformly

Lack of data

Geographic-specific challenges

Insufficient technology

Limited funding


Clear Standards

Market Access

Consumer Protection

Information Technology

National Organic ProgramCurrent Initiatives

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Fairness and Transparency

Clear Standards

To level the playing field:

• Publish clear standards

• Address gray areas

• Continue to collaborate with National Organic Standards Board

• Increase transparency


Economic Opportunity

Market Access

To increase organic agriculture in the U.S.:

• Enhance local and regional connections

• Promote USDA technical and financial assistance

• Provide access to additional foreign markets

• Ensure uniform application of standards


Consumer Confidence

Consumer Protection

To protect the integrity of organic products:

• Continue rigorous investigations

• Conduct more audits

• Initiate market surveillance program

• Enhance enforcement actions

• Ensure terms of trade partnerships are being met

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Organic Integrity


To better connect the organic community:

• Build a real-time database

• Provide historic and current information on certification status

• Display search results in list- or map-based formats

• Allow all certifying agents to efficiently submit updates


Level the playing field

Protect organic integrity

Increase number of organic farms and businesses

Connect organic community via INTEGRITY

Clear StandardsConsumer ProtectionMarket AccessInformation Technology


Sound + SensibleHow to maintain organic integrity in a sound and sensible manner

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“Sound and Sensible” Certification Initiative

Maintaining organic integrity in a sound and sensible manner

Current Landscape

• Ten years of NOP implementation

• Complex regulatory scheme

• Strict process-based oversight


Issues

• Inconsistent certification process

• Recordkeeping focus and burden

• Expense of certification

• Burden of time that is involved in inspections and maintaining paperwork

• Some farms that comply with organic standards avoid certification.


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Goal: Make Organic Certification:

Affordable, Accessible and Attainable for all operations

• Affordable – reasonable fees, reasonable compliance costs

• Accessible –certifiers and technical assistance available locally

• Attainable – Clear and understandable standards, plain language, reasonable record keeping requirements


Current Initiatives

• Organic Certification Business Process Survey

– Conducting an assessment to identify key certification barriers for small businesses

– Identify ways to reduce paperwork burden

• NOSB Continuous Improvement Initiative

– How to certifying the practices rather than the paperwork

• Ideas from Certifying Agents


NOP Sound and Sensible Certification Ideas

1. Accreditation AuditsHow can we emphasize verification of practices instead of paperwork?

2. Record-keeping requirementsCan we provide a definitive list of required records?

3. Common set of OSPsCan we establish a common set of adequate OSPs?

4. Organic Systems PlanReexamine how can we maximize the value of the OSP while minimizing recordkeeping burdens?

5. Inspector qualificationsHow can we incorporate training and guidelines for inspectors?

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NOP Sound and Sensible Certification Ideas

6. Cost share alternatives?Could FSA micro-loans (<$25,000) be used to help beginning organic farmers cover the cost of certification?

7. Level playing field for direct marketersHow can we ensure that direct organic marketers comply with certification requirements?

8. Technical assistanceHow can we collaborate with NRCS to better provide technical assistance to organic and transitional farmers?

9. OutreachHow can we help beginning farmers and direct marketing operations understand certification?


How Does This Fit Into NOP’s Strategic Priorities? Market

Access

Clear Standards


Consumer Protection


2013 PreviewWhat’s Next?

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2013 Focus Areas

Sunset 2013

• National List rulemaking (sodium nitrate, etc.)

• Origin of livestock, pet food, aquaculture

• Implementation of residue testing requirements, unannounced inspections

• Guidance documents, including: – Organic seeds, grower groups

– Inspector qualifications

– Handling unpackaged organic products

• Classification of materials / permitted substances


2013 Focus Areas (cont.)

• Finalize corrective actions for OIG milk audit

• Verify international trade partnerships

• Increase international market access

• Reduce the certification burden on diversified, direct marketing operations

• Post additional audits/compliance info

• Support and coordinate the NOSB

• Improve accreditation process


Where Can I Learn More?

USDA National Organic Program

www.ams.usda.gov/nop

Organic Integrity from Farm to Table,

Consumers Trust the Organic Label

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Join the NOP Organic Insider

Receive email updates on:

• Organic certification cost share

• Drought relief efforts

• Fraudulent organic certificates

• Regulatory changes and guidance

• Much more!

• Subscribehttp://bit.ly/NOPOrganicInsider

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Thank You

Organic Integrity fromFarm to Table,

Consumers Trust theOrganic Label

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National Organic Program Update final.pdf · Agricultural Marketing ServiceUSDA National Organic Program Organic Certification: •Ensures products were produced without prohibited

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